Beyond Our Borders by Paul Ecke III

Beyond Our Borders by Paul Ecke III

With the exception of mums and a few other classes of plants, most vegetative genera, like spring annuals, cut flowers, perennials and tropicals, are produced outside the United States today. The trend started in the early 1970s, when rising energy costs forced many domestic cut flower growers offshore, with cutting producers following.

For poinsettias, the offshore movement has allowed for more competitive prices, increasing availability and substantially more volume to satisfy increasing consumer demand. After adjusting for inflation, the price of an unrooted poinsettia cutting has declined by more than 70 percent over the past 25 years.

Contrary to the belief that labor is the biggest savings component, energy and infrastructure costs were the factors that were most positive when Ecke Ranch moved offshore. Additionally, the offshore movement allows Ecke to produce more than five times the volume of cuttings that were produced domestically in 1983. This has allowed us to remain competitive in the global market, as well as ensure the poinsettia is enjoyed by many more consumers than 25 years ago.

An interesting contrast is that of the garment industry. Most garment assembly is now done offshore. There was an initial push by that industry to Central America, then as labor costs and governments changed favorably, the garment industry set up shop in many other countries. Now, there is resurgence back to Central America–and not due to labor. Proximity to market and freight costs now weigh more heavily into decisions about where final assembly should be done. Additionally, advantages in exchange rate and labor costs have diminished as world economies have equalized.

We believe those same forces apply to horticulture. They will help shape how and where production occurs in the future. A contemporary example is the dramatic change that has occurred in finished production between Canadian and U.S. growers–a simple change to exchange rate has dramatically reshaped the product mix, customer profile and shipping ranges for Canadian produced plants.

There are a number of factors pulling us in different directions. Ecke Ranch doesn’t see USDA requirements lessening, but there are more and more crops authorized to be shipped into the U.S. in forms other than an unrooted cutting. Longer-term trends in exchange rates, interest rates, energy and other inputs also will influence where production occurs. Additionally, sustainability factors can clash with zero-tolerance requirements for pests and diseases at port of entry. While substantial savings in heat and other inputs suggest even more production will occur offshore, it is not certain how much more growth of offshore production will occur in the future. Climate and proximity to market are critical.

For many years, Ecke has emphasized its own production. About 70 percent of all production is produced via company-owned farms, with the balance being produced at third-party contractors. Specialization and internal controls for quality and efficiency drive this focus. We believe we can better manage intricate and exact requirements of customers and product forms using our own farms. We have also invested heavily in internal information systems, so the customer experience, product inventory and quality can be managed cohesively.

Gone are the days when a company could specialize successfully in one aspect of product development or production. Successful companies will now own genetics, offshore production and systems and onshore value adding and distribution functions.

Leave a Reply

More From Varieties...
finneran bee on snakeroot

September 28, 2016

Which Annuals And Perennials Are Good For Pollinators?

If you are a grower looking for information on producing plants that are safe for pollinators, or which plant types can be marketed as good food sources for bees, the new publication “Protecting and Enhancing Pollinators in Urban Landscapes” provides a good resource.

Read More
phlox-fashionably-early-flamingo-walters-gardens

September 27, 2016

Walters Gardens Partnering With Darwin Colombia On Unrooted Cuttings

Beginning in spring 2017, Darwin Colombia will offer unrooted cuttings of more than 40 varieties of Walters Gardens’ new genetics, including many popular genera such as Agastache, Monarda, Nepeta, and Phlox.

Read More
Streptocarpus Ladyslippers Grape Ice (Green Fuse Botanicals)

September 27, 2016

9 New Blooming Potted Plants To Jazz Up The Home And Garden

Blooming potted plants are the ideal gift for anyone, from a homesick college student to a spouse in need of some cheering up. Check out nine these new introductions hitting the retail market in 2017.

Read More
Latest Stories
finneran bee on snakeroot

September 28, 2016

Which Annuals And Perennials Are Good For Pollinators?

If you are a grower looking for information on producing plants that are safe for pollinators, or which plant types can be marketed as good food sources for bees, the new publication “Protecting and Enhancing Pollinators in Urban Landscapes” provides a good resource.

Read More
phlox-fashionably-early-flamingo-walters-gardens

September 27, 2016

Walters Gardens Partnering With Darwin Colombia On Unro…

Beginning in spring 2017, Darwin Colombia will offer unrooted cuttings of more than 40 varieties of Walters Gardens’ new genetics, including many popular genera such as Agastache, Monarda, Nepeta, and Phlox.

Read More
Streptocarpus Ladyslippers Grape Ice (Green Fuse Botanicals)

September 27, 2016

9 New Blooming Potted Plants To Jazz Up The Home And Ga…

Blooming potted plants are the ideal gift for anyone, from a homesick college student to a spouse in need of some cheering up. Check out nine these new introductions hitting the retail market in 2017.

Read More
clematis-taiga-feature

September 24, 2016

Plantarium 2016 Honors Winning Novelty Varieties

Novelties at Plantarium 2016 were judged by an expert committee from the Royal Boskoop Horticultural Society.

Read More
mukgenia-nova-flame-terra-nova-nurseries-feature

September 23, 2016

Growers Offer Advice On How To Grow Mukgenia ‘Nova Flam…

‘Nova Flame’ is best brought in as a summer or fall crop and bulked over the winter.

Read More
deutzia-yuki-snowflake

September 22, 2016

Allan Armitage Suggests Plants That “Even My Neig…

When the urge to garden strikes, every homeowner needs a few plants like these for their yard.

Read More
Phlox 'Pink Profusion' (Green Leaf Plants)

September 13, 2016

Aris Horticulture Names Blair Hoey As Managing Director…

Hoey brings more than 20 years of greenhouse production and management experience to Green Leaf Plants, a young plant supplier of perennials serving the U.S. and Canadian markets.

Read More
hibiscus-hollywood-hot-shot

September 12, 2016

New Variety Award Winners Announced At Farwest 2016

A panel of industry experts, as well as show attendees, selected a thornless blackberry and a hydrangea for the top honors.

Read More

September 7, 2016

Check Out The Best Annuals For Attracting Bees And Butt…

Public interest in protecting bees and other pollinators has initiated a new market for flowers that are good food plants for pollinators. Here's a list of annuals Michigan State University Extension recommends that are attractive to bees and other pollinators.

Read More

September 6, 2016

10 Colorful Spring Plants For Sales In 2017

Trends with plants come and go, but color always sells. These spring crops for 2017 offer color choices ranging from bold and vibrant hues to understated, softer tones, and they’re versatile enough to be used in baskets, containers, beds, and borders.

Read More

September 5, 2016

7 New Shrubs And Foliage Plants For Spring Interest

Perennials and annuals aren’t the only plants that supply spring color to the garden. Shrubs and foliage plants also add color and interest and are a great way to round out your spring product mix.

Read More
Janikia Eckert

September 4, 2016

All-America Selections Presents Achievement Awards At I…

Jim Nau of Ball Horticultural received the AAS Medallion of Honor, while Janika Eckert of Johnny’s Selected Seeds took home the Breeders Cup.

Read More
Phlox 'Pink Profusion' (Green Leaf Plants)

August 30, 2016

14 Cool Season Plants To Kick Off The Spring Season

These new cultivar introductions for 2016 are spring bloomers that can take the cold for early-season sales.

Read More
Penn State University Trial Day

August 26, 2016

How Greenhouse Growers Can Broaden Their Horizons

Allan Armitage says you can learn new ideas to help your business when you get out to visit plant trials and other growers.

Read More

August 23, 2016

Kick Spring Sales Up A Notch With 20 New Plant Introduc…

It’s time to look forward to the spring season and what plants will get your business off to the right start. These 18 new cultivars have all the traits of good breeding — uniform habits, bold colors, showy blooms, good vigor, and excellent branching.

Read More

August 23, 2016

Gardens Alive! Parent Company Buys Zelenka Farms

  Zelenka Farms, which has been in Chapter 11 bankruptcy, says LM Farms, which owns Gardens Alive!, has purchased the company and all of its assets. BFN Operations LLC and its affiliated entities, d/b/a Zelenka Farms, operated one of the largest wholesale nurseries in the U.S. Its products include shrubs, trees, perennials, roses, and groundcovers. The owners of Gardens Alive! have successfully purchased several other companies from bankruptcy and are experienced nursery managers. Niles Kinerk, Chairman of LM Farms, stated that “the opportunity to purchase Zelenka Farms assets and to continue the turnaround that is well underway is exactly the kind of opportunity that we look for. We understand the efforts of the management team led by Eric Ek and others have been successful, and we will support the management team in the coming months and years.” Zelenka Farms operates its six facilities across the key growing regions in the […]

Read More
Coreopsis-UpTickCream-19793-DarwinPerennials

August 20, 2016

Growing Tips On Coreopsis UpTick Series From John Wilso…

Editor’s Note: In this new feature, the Greenhouse Grower varieties team will choose one noteworthy variety each month we think is worth bringing to your attention. Then we’ll share growers’ and breeders’ perspectives on the best ways to produce it successfully at your operation. This month we focus on the hardy Coreopsis UpTick series, winner of Greenhouse Grower’s 2016 Industry’s Choice Medal of Excellence for Breeding. Growing Tips From John Wilson, Seville Farms When asked about producing Coreopsis UpTick, John Wilson says he doesn’t have much to say because it was so easy to grow. Wilson, a Corporate Grower for Seville Farms, says based on the new series’ strong performance during the trialing he has done so far, the nursery ordered a large quantity of the plants for future growing. “If breeders were looking to come up with something that says ‘wow,’ they have done it with the UpTick Series,” […]

Read More
Eucomis arrangement from Golden State Bulb

August 19, 2016

What’s New With Blooming Potted Plants

From exotic orchids and lilies to flashy red cyclamen and jaunty gerberas, new blooming potted plants come in every shape, size, and color.

Read More
[gravityform id="35" title="false" description="false"]